Rising interest rates scare Wall Street
Showbiz stocks were hard hit by Monday’s selloff on Wall Street, as fears of rising interest rates sent the Dow Jones Industrial Average down as much as 220 points before it recovered somewhat to close down 146.98 to 8917.64.Every major entertainment stock was down: Time Warner lost $1.12 to $74, Walt Disney Co. lost $1.37 to $120.75 while Viacom fell 56¢ to $54.06 and News Corp. lost 68¢ to $26.25. Even Seagram Co., subject of a bullish article in the influential “Barron’s” over the weekend lost ground after initially resisting the selloff, finishing down 6¢ to $39. Cable stocks, which are particularly vulnerable to rising interest rates, also fell. Tele-Communications Inc. slid 75¢ to $31.18, Comcast was down 93¢ to $33.81 while Cablevision Systems lost $2.50 to $59.50. “Everything looks ugly,” said one analyst, noting that every part of the entertainment sector was hurt. CBS fell 68¢ to $34.06 while Chancellor Media Corp. gave up $2.56 to $40.18. With the Dow at around 9,000, the 146-point fall was not hugely significant, translating to a dip of only 1.62%. But the broader-based Nasdaq index was down 2.6%, which some Wall Streeters said was more worrisome.